Indian Premier League (IPL) franchises Punjab Kings, Royal Challengers Bangalore, and Kolkata Knight Riders have joined blockchain-powered platform Socios, which is the brainchild of cryptocurrency unicorn Chillz. Socios has huge clients, including some of the biggest European clubs like FC Barcelona, Juventus, Paris Saint Germain (PSG), and Atletico de Madrid as their members
What is Socios?
Teams can host a fan token offering (FTO) that allows the fans to get tokens that can be used for further activities. This token is a finite, digital asset that provides access encrypted ledger that governs ownership of voting rights and membership rights too.
How can one use Socios?
In order to use this facility, one needs to purchase Chiliz tokens (CHZ) via a cryptocurrency so that they can acquire tokens. Socios lets the fans have many benefits, such as they can vote in polls, get VIP rewards and exclusive sponsorship promotions. This also includes AR-enabled features, chat, forums, competitions, games, and many more. The use of fan tokens is increasing at a steady rate, as this year has generated $120 million, which would be shared with Socio’s sporting partners.
The franchises are looking for other ways to boost the finances and revenue as the IPL 2021 is suspended for now and they need to cover up the losses. According to Duff & Phillips, IPL is the most valuable sporting tournament in India with worth Rs 45,000 crores.
Venky Mysore, CEO & MD of Kolkata Knight Riders, said, “We were keen to look at new ways of enhancing and optimizing how we engage with our fans, and Socios.com seemed like the right fit. Socios.com has already proven what a powerful tool it can be for fan engagement with some of the biggest sporting organisations in the world.”
Chiliz owns a market capitalisation of more than $2 billion. It is also said that The Reserve Bank of India is asking informally and urging lenders to cut ties with cryptocurrency exchanges and traders due to highly speculative market booms, despite a ruling from Supreme Court that banks can work with this industry, as per a Reuters report.
Cryptocurrency has recently faced some obstacles from bank processing transactions related to Crypto trades and there’s also a word out there in the market that banks are not ready to support this industry quite much.
Nishchal Shetty, Crypto exchange WazirX’s founder revealed to Inc42 and came in support of crypto exchange. He said: “Some banks have already come forward to work with the crypto ecosystem, although I can’t reveal names. These are the ones who may end up disrupting the sector and ending the monopoly of a select few banks.”